WASHINGTON A proposal in Seattle indicated to enhance homeownership amongst Muslims by offering funding certified with stringent Islamic law– knowncalled Sharia– is gaining ground in the newest test for regional leaders attemptingaiming to accommodate varied religious beliefs.
We will work to develop new devices for Muslims who are prevented from using standard home mortgage items due to their religiousreligions, Seattle Mayor Ed Murray said throughout a press conference July 13.
Sharia, which comes from the Koran and indicates the best course, restricts the payment of interest– the main way loan providers earn. Numerous of Seattles 30,000 exercising Muslims, therefore, are hard-pressed to discover Sharia-compliant financing choices when purchasing houses, making huge purchases or beginning a company.
A Seattle real estate committee recommended neighborhood and companymagnate discover a way to helpto assist them, a push the mayor supporteded. Seattle is just the most currentthe current to explore financing options for sincere Muslims– following in the footprints of Chicago. But the steprelocate to offer Sharia-compliant monetary products has actually drawn fire. Critics have cautioned that it opens the countries financial system to Islamic radicals and terror groups, supplying a mechanism for money laundering.
In 2008, conservative legislators in Congress went after American International Group for offering Sharia-compliant insurance coverage programs.
Rep. Frank Wolf, R-Va., and then-Rep. Sue Myrick, R-NC, sent AIG then-Chairman Edward Liddy a highly worded letter that suggested Sharia financing could be controlled and made use of by terrorist organizations like Al Qaeda and Hamas to launder cash.